Power Metals Announces Closing of $6,455,250 Private Placement of Flow- Through Shares
POWER METALS ANNOUNCES CLOSING OF
$6,455,250 PRIVATE PLACEMENT OF FLOW-
THROUGH SHARES
NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
VANCOUVER, BC
,
March 27, 2023
/CNW/ -
Power Metals Corp. (
"
Power Metals
" or the
"
Company
"
) (TSX VENTURE:PWM)(FRANKFURT:OAA1)(OTCQB:PWRMF)
is pleased to
announce that it has closed its previously announced brokered private placement of 11,325,000
common shares of the Company that will qualify as "flow-through shares" (within the meaning of
subsection 66(15) of the Income Tax Act (
Canada
)) (the "
Flow-Through Shares
"). The Flow-
Through Shares were issued at a price of
$0.57
per Flow-Through Share for aggregate gross
proceeds of
$6,455,250
(the "
Offering
").
Canaccord Genuity Corp. acted as Agent for the Offering, and received a cash commission equal to
6% of the gross proceeds of the Offering, except with respect to subscribers on the Company's
"president's list" for which a cash commission equal to 2% of the gross proceeds of the Offering
was paid. As additional consideration, the Agent received 226,500 broker warrants. Each brokers
warrant is exercisable into one common share of the Company at
$0.40
per common share until
September 27, 2024
.
Pursuant to the Offering, Winsome Resources Limited has increased its share ownership in Power
Metals to 10.13%.
The Flow-Through Shares, the brokers warrants and any shares issuable on exercise thereof are
subject to a hold period expiring
July 28, 2024
. The Offering is subject to certain conditions including,
but not limited to, the receipt of the approval of the TSX Venture Exchange.
The gross proceeds of the Offering will be used by the Company to incur eligible "Canadian
exploration expenses" that will qualify as "flow-through critical mineral mining expenditures" as such
terms are defined in the Income Tax Act (
Canada
) and "eligible
Ontario
exploration expenditures" as
defined in subsection to 103(4) of the Taxation Act, 2007 (
Ontario
) (the "
Qualifying Expenditures
")
related to the Company's projects located in the province of
Ontario
on or before
December 31,
2024
. All Qualifying Expenditures will be renounced in favor of the subscribers effective
December
31
, 2023.
About Power Metals Corp.
Power Metals Corp. is a diversified Canadian mining company with a mandate to explore, develop
and acquire high quality mining projects. We are committed to building an arsenal of projects in both
lithium and high-growth specialty metals and minerals. We see an unprecedented opportunity to
supply the tremendous growth of the lithium battery and clean-technology industries. Learn more at
www.powermetalscorp.com
ON BEHALF OF THE BOARD,
Johnathan More
, Chairman & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the
content of this news release.
The securities being offered have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and
may not be offered or sold in
the United States
, or to, or for the account or benefit of, a "U.S.
person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption
therefrom. This press release is for information purposes only and does not constitute an offer to
sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.
Cautionary Note Regarding Forward-Looking Information
This press release contains forward-looking information under applicable Canadian and
United
States
securities laws. These statements are based on current expectations of the Company and
include statements relating to the use of proceeds raised under the Offering (and the timing
thereof), the renunciation of the Qualifying Expenditures, receipt of final approval of the Offering
from the TSX Venture Exchange, and tax treatment of the Flow-Through Shares. These statements
should not be read as guarantees of future performance or results. Such statements involve known
and unknown risks, uncertainties and other factors that may cause actual results, performance or
achievements to be materially different from those implied by such statements. Although such
statements are based on management's reasonable assumptions, Power Metals assumes no
responsibility to update or revise forward-looking information to reflect new events or
circumstances unless required by law.
Although the Company believes that the expectations and assumptions on which the forward-
looking statements are based are reasonable, undue reliance should not be placed on the forward-
looking statements because the Company can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties. These statements speak only as of the date of this press
release. Actual results could differ materially from those currently anticipated due to several
factors and risks including various risk factors discussed in the Company's disclosure documents
which can be found under the Company's profile on
www.sedar.com
.
SOURCE
POWER METALS CORP
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For further information:
Power Metals Corp., Johnathan More, 515-401-7479,
CO: POWER METALS CORP
CNW 09:31e 27-MAR-23